Download a PDF copy of Appendix C: Review scope and method.

Download a PDF copy of Appendix B: Abbreviations, acronyms and glossary.

Download a PDF copy of Appendix A: Submissions and comments.

Nothing came to our attention that gave us cause for concern that relevant probity standards and arrangements were not followed throughout the licensing process.

Agencies maintained strict confidentiality to protect commercially sensitive information and support the integrity of the process.

However, aspects of probity planning and implementation could have been managed more effectively.

Agencies implemented a range of mechanisms to support negotiation discipline in bilateral discussions with TLC, including a bilateral engagement and negotiation plan.

Not all proposals advanced by TLC were accepted, and some were but with modification. The option to revert to a competitive process remained available during negotiations.

The government also negotiated changes to commercial terms including a material adverse change (MAC) arrangement related to lottery taxation, which substantially increased the premium achieved by the state.

Covered in this section:

Nothing has come to our attention to indicate that the government had decided on a bilateral approach prior to undertaking a process to consider its options. 

The government's decision to adopt a bilateral strategy was informed by market soundings, commercial analysis and expert advice that the incumbent would value the licence more highly than potential competitors, and that effective competition would be limited. 

The government also considered that continuing with TLC would reduce risks to the state's future lottery licence tax revenues. 

We made 3 recommendations to address our findings. The relevant agencies have either accepted them in principle or in full.

What we examined

Our review followed 3 lines of inquiry:

1. Was the decision to adopt a bilateral negotiation process supported by robust evidence and advice?

2. Did the Department of Treasury and Finance and Department of Justice and Community Safety follow relevant commercialisation and probity policies and processes?

3. Did the 40-year public lottery licence extension optimise value for Victoria?

To answer these questions, we examined:

Download a PDF copy of Appendix G: Linewide package.